Jokowi stresses on raising financial literacy to boost micro economy

Jokowi stresses on raising financial literacy to boost micro economy

President Joko Widodo delivered his speech at the meeting of the national team on acceleration of regional financial access (TPAKD) in Jakarta on Tuesday (Dec 10, 2019). ANTARA/Joko Susilo/sh

We want all regions to encourage people to access financial services. We have to accelerate this
Jakarta (ANTARA) - President Joko Widodo (Jokowi) has put his weight behind improving financial literacy and inclusion among Indonesians to access banking services to drive micro economic growth.

"This is crucial since from here we can improve the family's economy, our micro economy," Jokowi remarked during a coordination meeting of the national team on acceleration of regional financial access (TPAKD) here on Tuesday.

The head of state is upbeat about the Financial Services Authority (OJK) improving financial literacy and inclusion through the formation of the TPAKD to encourage the people to put their money in banks as savings and seek loans from financial institutions.

"We want all regions to encourage people to access financial services. We have to accelerate this," Jokowi affirmed.

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Head of the OJK Board of Commissioners Wimboh Santoso remarked that the agency closely collaborated with the government to step up access to financial services for people through the role of TPAKD and the development of Micro Endowments Bank (BWM).

"Efforts to improve access to financial services has become OJK's priority along with Bank Indonesia and the local as well as central governments, as financial access has been closely linked to the development of public welfare and funding for national economic development," Santoso remarked.

Increased access to financial services will boost investment and public savings in banks that will further increase loan disbursement to support economic activities.

"Establishment of the TPAKD is expected to support the government's priority programs, especially in the development of new economic centers in regions, such as the export-oriented industry and tourism industry," he stated.

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Until November 2019, the government had set up 164 TPAKD at the provincial and district levels that implemented various programs to improve access to financial services.

As of October 2019, the disbursement of micro loans (KUR) had reached Rp127.3 trillion, or 90.9 percent of its targeted Rp140 trillion for 2019; some Rp31.9 trillion of loans in the fishery sector under the Jaring Program; while the Laku Pandai Program had collected Rp2.21 trillion of public savings from 25.8 million people across the country.

The Simpel Program accrued Rp8.76 trillion of public savings from 21.6 million students in 350 thousand schools.

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